sales and use tax paid on property directly used or consumed in or during the provision, creation or production of data processing or information services, except for equipment used to provide such services as part of a single charge for internet access service as set out in Rule 3.366.

In 2015 and thereafter, providers and their subsidiaries can submit refund requests annually for Texas state sales and use tax paid on qualifying purchases during the entire preceding calendar year.

A provider or its subsidiary claiming the sales and use tax refund under this program cannot claim special property tax benefits for economic development under Tax Code Chapter 313, Subchapter B on that same tangible personal property.

This program's total available refund amount is capped at $50 million each calendar year. If the total of all qualifying refund requests received for a calendar year exceeds this cap, each provider or subsidiary submitting an eligible refund request will receive a pro rata share.

The Refund Request Process

Providers of cable television, internet access or telecommunications services can request a refund of Texas state sales and use tax paid on qualifying purchases. Subsidiaries of a provider can also request a refund but must identify the associated provider on the refund request. The terms "parent" and "subsidiary" are defined in Texas Business Organizations Code, Sections 1.002(85) and 1.002(65), respectively.

Providers and subsidiaries requesting a refund must submit all required information to the Comptroller. Providers and subsidiaries should submit only one claim per applicable refund period that covers all Texas state sales and use tax paid on qualifying purchases during the refund period. The Comptroller can request additional documentation during the verification process and will deny refunds if all required documentation is not provided.

Submissions by third parties must include a Power of Attorney. These should be emailed to citrus.help@cpa.texas.gov. The subject line of the email should reference the taxpayer name and taxpayer number who is submitting the refund claim.

Filing by the Refund Request Date

Electronic Claim Submission

Requests must be in comma-delimited (CSV) format. Use the exact fields in the exact order shown in the example. Refer to the requirements in the table Data Required to Request a Refund. Do not include any blank lines, totals or subtotals. After entering all data, delete the header row, and save the file to your computer as a CSV file. Include each transaction for which you are requesting a refund in a single file. Taxpayers can only have one active submission on file at a time. Subsequent uploads will overwrite previous uploads.

The total Amount Subject to Tax on Qualifying Purchases entered on the Refund Summary page will not be adjusted if it does not match the detailed transactions file received. The taxpayer requesting the refund must submit changes to the Total Amount Subject to Tax on Qualifying Purchases by the refund request date.

The total Amount of State Tax Refund Requested on the Refund Summary page will not be adjusted if it does not match the detail transactions file received. The taxpayer requesting the refund must submit changes to the Total Sales Tax Refund Amount Requested by the refund request date.

Upload your full detailed transactions file as early as possible to avoid peak website traffic, which may prevent the upload of your file.

Example

Vendor Name

Taxpayer Number Who Paid Tax to State

How Paid

Invoice Number

Invoice Date

Item Description

Payment Date

Amount Subject to Tax

Amount of State Tax Refund Requested

Willow Equipment Company

12300000168

Assessed

0013135-001

09/01/2013

Router

09/01/2013

40.000.00

2,500.00

Willow Equipment Company

12300000168

Accrued

1452

10/17/2013

Servers

10/17/2013

10,286.00

642.88

L & L Supply

12300000093

Paid to Vendor

INV100-154168

11/14/2013

Wiring

11/14/2013

971.58

60.72

L & L Supply

12300000093

Refunded

INV100-154168

11/14/2013

Wiring

11/14/2013

-971.58

-60.72

Data Required to Request a Refund

Field

Format

Character Limit

Instructions

Vendor Name

text

50

Input vendor (seller) name from the invoice.

Taxpayer Number Who Paid Tax to State

number

11

Enter the 11-digit Texas sales and use tax number under which the tax for this transaction was reported.

If tax was paid/refunded by a vendor, enter the vendor's sales and use tax number.

If tax was accrued and remitted on your return(s) or assessed by the Comptroller, enter your sales and use tax number

How Paid

text

15

Describe how the tax was paid.

Enter "assessed" if the tax was assessed by the Comptroller.

Enter "accrued" if the tax was accrued and remitted on your sales tax return.

Enter "paid to vendor" if the tax was invoiced by and paid to a vendor (seller).

Enter "refunded" if the tax has been refunded/credited to you.

Invoice Number

text

30

Enter the invoice number exactly as it appears on the invoice.

Invoice Date

date

mm/dd/yy

Enter the invoice date in mm/dd/yyyy format.

Item Description

text

100

Provide a detailed description of the items(s) purchased and/or a manufacturer part number.

Do not list inventory codes.

The Comptroller may request additional information.

Payment Date

date

mm/dd/yy

Enter the date the tax was paid in mm/dd/yyyy format. This date must be during a valid period for this refund request.

Amount Subject to Tax

number

12

Enter the total dollar amount on which sales or use tax was calculated for qualifying items on this invoice.

Amount of State Tax Refund Requested

number

10

Enter the amount of state tax (6.25%) paid on qualifying items on this invoice.

Paper Claim Submission

Providers and subsidiaries can request a waiver from electronic filing if they cannot file electronically. Waiver requests must be submitted at least 30 days before the refund claim deadline and must include a detailed written explanation of the provider's inability to file electronically. Send a request for a waiver from electronic filing to the Comptroller of Public Accounts, P.O. Box 13003, Austin, TX 78711.

Filing after the Refund Request Date

Email requests filed after the refund request date to citrus.help@cpa.texas.gov. Include the following information in the body of the email:

Texas taxpayer number

taxpayer name

refund request year (e.g., for qualifying purchases on which tax was paid Jan. 1, 2015, through Dec. 31, 2015, the refund request year is 2015)

claim type: provider or subsidiary

provider Texas taxpayer number (if claim is being filed by subsidiary)

To be considered timely, a claim for refund of Texas state sales and use tax must be filed by the refund request date. The refund request date is March 31 of the year immediately following the calendar year in which the tax was paid. If the refund request date falls on a Saturday, Sunday or legal holiday, the refund request date will be the next business day.

The Comptroller will deny late-filed claims for lack of funds if the total amount of eligible requests for the applicable refund period received by the refund request date is greater than $50 million. If the total amount of eligible requests received by the refund request date for the applicable refund period is less than or equal to $50 million, we will process late-filed requests on a first-come, first-served basis.

The Comptroller's Audit Division verifies refund claims. A refund claim will be denied if the Comptroller determines that the taxpayer requesting a refund was not a provider of a qualifying service, or a subsidiary of a qualifying provider, during the calendar year on which the claim is based.

Additionally, the refund amount will be reduced if the Comptroller determines that the request includes items:

that are not qualifying purchases,

on which no Texas sales or use tax was paid,

without required or supporting documentation, or

for which additional information requested by the Comptroller was not provided within 30 days.

The amount of refund available to each provider or subsidiary for a calendar year depends on whether the $50 million cap is met.

$50 million or less claimed: If the total amount of Texas state sales and use tax claimed on qualifying purchases by all providers and subsidiaries that are eligible for a refund is less than or equal to $50 million for the calendar year, the Comptroller will refund the full amount of Texas state sales and use tax paid on qualifying purchases, as claimed by each provider and subsidiary and verified by the Comptroller.

More than $50 million claimed: If the total amount of Texas state sales and use tax claimed on qualifying purchases by all providers and subsidiaries that are eligible for a refund is more than $50 million for the calendar year, the Comptroller will prorate the amount of refund.

For initial refund payments, each provider and subsidiary will be entitled to a pro rata percentage of the amount requested by the provider or subsidiary and verified by the Comptroller. The pro rata percentage will be determined by comparing the $50 million available for refund to the total amount of all claims submitted for refund.

The Comptroller's Audit Division will provide refund verification results to providers and subsidiaries that have submitted a claim. If additional information is required to process the claim, the Comptroller will send a written request for more information to the provider or subsidiary, who must provide the information to the Comptroller within 30 calendar days.

If the Comptroller denies a claim, in whole or in part, the provider or subsidiary who submitted that claim will receive a written notice that explains the reason(s) for denial and identifies the amount approved for refund, if any. Providers or subsidiaries who receive a denial notification can appeal the denial by timely requesting a hearing.

$50 million or less claimed: If the total amount of Texas state sales and use tax claimed on qualifying purchases by all providers and subsidiaries that are eligible for a refund is not more than $50 million for the calendar year, the Comptroller will issue refund payments equal to the amount of each approved refund claim by Aug. 31 of the year that follows the calendar year in which the tax was paid.

More than $50 million claimed: If the total amount of Texas state sales and use tax claimed on qualifying purchases by all providers and subsidiaries that are eligible for a refund is more than $50 million for the calendar year, the Comptroller will issue prorated initial refund payments by Aug. 31 of the year that follows the calendar year in which the tax was paid. The Comptroller will issue any additional refund payments at the conclusion of all appeals through the administrative hearings process and state courts.

Most providers or subsidiaries who receive a denial can request a hearing. To request a hearing, submit a letter with a statement of grounds within 60 days from the date printed on the denial notice. The postmark date, or its equivalent, on a request for hearing will constitute the filing date. The Comptroller will only consider hearing requests that are filed timely. See Rule 1.5.

Providers or subsidiaries whose late-filed requests are denied for lack of funds are not eligible to request a hearing.

If the total amount of Texas state sales and use tax claimed on qualifying purchases for a calendar year by all providers and subsidiaries that were eligible for a refund exceeds $50 million, the Comptroller will recalculate the total approved refund amount and each provider and subsidiary's pro rata percentage of that amount when all administrative and state appeals conclude. The Comptroller will issue an additional, final refund payment for that calendar year to eligible providers or subsidiaries.

If the approved refund claims exceed the $50 million cap for a calendar year, the Comptroller will pay the entire $50 million allocated for the refund program for that calendar year to qualifying providers or subsidiaries. The state will not retain any remaining funds resulting from claims denials.

HB855 Browser Statement

In 2015, the Texas Legislature passed House Bill 855, which requires state agencies to publish a list of the three most commonly used Web browsers on their websites. The Texas Comptroller’s most commonly used Web browsers are Google Chrome, Microsoft Internet Explorer and Apple Safari.